Greek Shipping News Cuts
Week 42 - 2010


Shipping income jumps but still has someway to go to match 2008

---As worldwide demand for goods strengthens, shipping's contribution to Greece's national coffers continues to swell. Latest Bank of Greece data reports income from transport services in the first eight months of 2010 is running some 15% ahead of the 2009 period and now stands at Euro 10.442bn, of which shipping contributed around Euro 10.4bn.
Impressive as this is, there is still some way to go to match 2008, for it has to be remembered that in the 12 months to end-August 2009, shipping income dipped some 30% year-on-year.
For the month of August, income this time round was Euro 1.728bn, up 18.5% on the 2009 month.
Tourism, the other major earner, continues to struggle. Income from tourism at end-August was down 7.2% on an annual basis to Euro 7.05bn. The decline came though actual tourist arrivals to end-August 2010 are similar to those of 2009, but earnings were hit by the incentives offered to keep the numbers up.
Like shipping, income from the sale of goods was better. In the January/August period these gained 6.8% in 2010 to reach Euro 10.6bn.
An unusual bright spot appeared from the data regarding industrial orders. The Hellenic Statistical Authority (Elstat) reports new industrial orders rose 13.6% year-on-year to August, but again it still has a long way to go to make up the 25% decline at the same stage in 2009.
-- Filed: 2010-10-21

---Just a few days after the collapse of a multimillion-euro Qatari investment project in western Greece, visiting officials from the Arab state yesterday reassured the government that they were keen to invest some 5 billion dollars (the equivalent of 3.7 billion euros) in other projects in Greece.
The meeting was chaired by Minister of State Haris Paboukis, who is in charge of finding foreign investment for Greece, and Ahmad al-Sayed, chief executive of the Qatar Investment Authority. According to sources, the issue of the thwarted investment at Astakos was not broached during the talks. According to the original pact, two Qatari state companies had agreed to construct and operate a liquefied natural gas (LNG) terminal and an electricity plant at the western port. The deal, which would have been worth some 10 billion euros, was called off by the Qatari Energy Ministry which said the two firms had concluded that the investment would not be profitable in the long term.

Greece, Italy & Syria Collaborate on Power Plant
---22 October 2010 by Apostolos Papapostolou

Costamare files for IPO
---October 20, 2010. One of the world's largest privately held containership companies is looking to raise up to $260 million. Athens-headquartered Costamare Inc. announced today that it has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock, par value $.0001 per share.
The initial public offering price is anticipated to be between $15.00 and $17.00 per share. The offering is currently expected to include 13,300,000 shares of common stock (15,295,000 shares of common stock if the underwriters exercise their over-allotment option in full). Costamare's common stock has been approved for listing on the New York Stock Exchange under the symbol "CMRE."
Costamare Inc., a Marshall Islands company, owns and operates a fleet of 41 containerships aggregating 211,882 TEUs, making it one of the largest privately owned containership companies in the world. It has contracted to acquire four 3,351 TEU secondhand containerships to be delivered between December and February, and to purchase, subject to certain conditions, three 9,000 TEU newbuildings to be delivered in 2013 and 2014. Costamare plans to use the proceeds of the offering for vessel acquisitions and for general corporate purposes.
Morgan Stanley & Co. Incorporated and BofA Merrill Lynch will act as joint book-running managers and representatives of the underwriters, who will include Dahlman Rose & Company LLC, RBS Securities Inc. and Wells Fargo Securities, LLC. A written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, when available, may be obtained from Morgan Stanley & Co. Incorporated at 180 Varick Street, 2nd Floor, New York, NY 10014, Attention: Prospectus Department or by e-mailing, or from BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department; email:

Anbros Maritime switches out dry tonnage
---Greek operator Anbros Maritime is cautiously looking to renew its fleet and has so far disposed of one 1980s-built bulker and replaced it with a 1990s-built ship.
George Angelakis of Anbros confirms the company has sold the 28,300-dwt Platytera (built 1987) for $9.4m.
Anbros bought the Oshima-built bulker in 2007 for a reported $15m. It has now gone to Turkish buyers with dry docking and intermediate survey due.
Meanwhile, Angelakis reveals that Anbros was the buyer of the 38,000-dwt bulker Alam Selamat (built 1992), which was reported sold in September for $15.9m.
The ship will be delivered by the end of this month and will be renamed Pantanassa. The company has fixed it to Cargill for two years but Angelakis was unable to reveal the rate.
The other two vessels under its control were both built in 1994. The 28,500-dwt Aghia Marina (ex-Please Please Me) was purchased in January 2009 for $9.25m, while the similar-size Theomitor was bought from compatriot operator Union Commercial as the Dion in May for a reported $15m in a deal that included a charter running to January/March 2011 at $15,000 per day.
Angelakis says the joint venture is still in place and there is no time limit on it but that the two sides have not come across deals that they agreed upon.
By Gillian Whittaker Athens
Published: 22:01 GMT, 21 Oct 10 | updated: 20:16 GMT, 20 Oct 10

Omega sees a drop in charter revenues
---(Oct 22 2010)
Omega Navigation Enterprises reported total revenues of $19 mill and net Income of $2.4 mill for 2Q10.
This excluded losses on interest rate derivative instruments, incentive compensation grants expense and a one time settlement fee for the termination of a purchase agreement.
Including these items, the Company reported net loss of $0.9 mill.
Adjusted EBITDA for 2Q10 was $6.1 mill.
Omega fully owned and operated an average of eight product carriers during the period, the same number as in 2Q09. In addition, the company held and continues to hold a 50% interest in three double hull product/chemical tankers.
The Panamaxes averaged $18,552 per vessel per day and the MR's averaged $16,686 per vessel per day (net of voyage expenses) during 2Q10, down from $22,898 per vessel per day and $19,083 per day per vessel during 2Q09.
As for the first six months of this year, Omega reported total revenues of $34.4 mill and net income of $4.5 mill, excluding a loss on interest rate derivative instruments, non cash incentive compensation grants expense and a loss related to the termination of a purchase agreement.
Including these items, net loss was $0.4 mill. Adjusted EBITDA for 1H10 was $14.4 mill.
Excluding profit sharing, the company's Panamax product carriers earned an average TCE rate of $19,807 per vessel per day during the 1H10, as compared to $23,692 per vessel per day during 1H09.
The company's Handymaxes earned an average TCE rate of $16,370 per vessel per day during the period, compared to $19,910 per vessel per day during 1H09.
The company has also entered into an equal partnership joint venture named Megacore Shipping with a wholly-owned subsidiary of Glencore to acquire two 37,000 dwt Handysize double hull chemical/product tankers and seven LR1s to be constructed at Hyundai Mipo.
The construction and acquisition of the remaining seven LR1 newbuildings, owned by Megacore Shipping, are funded by debt and equity contributions by the shareholders.

Star Bulk collects from TMT
Star Bulk began trading on NASDAQ in December 2007 after purchasing its initial fleet from TMT, with Su serving as co-chairman. Su resigned in January 2008 and unloaded much of his Star Bulk holdings in the following months. Then in August 2008, Star Bulk disclosed that TMT had made legal threats against it, related to a registration agreement on selling shares.
Source: Fairplay Daily News 22 Oct 2010

TOP SHIPS Inc. Announces Corporate Developments
The Company also announced that it has entered into an agreement for the sale of one of its product tankers.
Finally, the Company announced that it has entered into an agreement to charter in a product tanker on a bareboat basis.

The benefits of experience
--- * Wednesday 20 October 2010
Are experienced shipmasters and chief engineers better decision makers than MBA graduates?
Mr Lyras speaks with some authority on the subject of decision making as last year he co-authored a text book, The Future of Decision Making, which explored aspects of the psychology of decision making.
His point is that however clever some business executives might be, experience and decision making based on actual knowledge still counts for a great deal. There are a few other businesses that could benefit from the application of such wisdom.
NICOLAS Straptsakis, group shipping manager at Bank of Cyprus, told the Ship Management Conference that his Cypriot friends told him that many shipowners still had a lot of money in their pockets and were being tempted to invest in new ships as prices had come down.
On the other hand he related how the importance of relationships and trust between shipping banks and owners is such that at least 50% of the assessment of a proposal is qualitative.
So much so that if certain owners came to the bank with a proposal involving investing in ships built in the 1920s, the chances were that the bank would finance it.
While ships of such age might have negligible value as cargo carriers, there was bound to be some enterprising investment house eyeing an opportunity for a shipping heritage fund on the basis that their asset value might actually increase, just as antique cars start to appreciate in value beyond a certain age.

Diana Shipping Inc. announces time charter contract with Cargill International S.A
This employment is anticipated to generate approximately US$14 million of gross revenue for the minimum scheduled period of the charter.

---Tsavliris is one of the most active emergency response contractors for maritime casualties worldwide and a frequent user of the Lloyds Open Form contract,
Meteorological information from the meteo office, which provided weather routing to the operation, indicated that strong southwesterly airflows were to be expected for a prolonged period in the area. Not being able to find shelter off the Spanish coast, and faced with gale force winds, the convoy (six vessels) was forced to head east in hope of finding better sea conditions for the maximum of three days of good weather required to complete the operation.
Certificate of Safe Delivery was signed on February 20,2001.
Source: Thursday, 21 October 2010 17:06 nafsgreen